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Friday November 13th, 2026

Maldives Tourism is booming but climate change threatens archipelago

ECONOMYNEXT – The Maldives is reaping the benefits of an aggressive strategy implemented to save the tourism industry, the country’s economic mainstay, in the face of the global Covid 19 pandemic.

And it is looking at tough measures to save itself from a more devastating threat; the effects of climate change.

The archipelagic country launched “Maldives, the Sun will Shine Again” campaign under its ‘Reacting, Rethinking and Redesign’ strategy within months of the onset of Covid 19. The Facebook campaign had reached 1.2 million people globally. All stakeholders joined in promoting the archipelago as a safe destination, capitalising on the naturally scattered islands that would keep tourists isolated, yet able to soak up the sun and enjoy themselves.

This they did in the face of the Maldives closing her borders for three months, and key markets being shut for nearly a year, explained Thoyyib Mohamed, Managing Director of Maldives Marketing and Public Relations Corporation, the force behind the “Visit Maldives” campaign, during a webinar titled
“Rediscovering Maldives: Covid 19 New Normal.”

Organised by the Friedrich Naumann Foundation for Freedom (FNF) South Asia, on February 7, the discussion was moderated by Riyaath Abdul Majeed, Founder of Pick Maldives.

Joining the session were the Minister of Tourism for the Maldives, Dr. Abdulla Masoom, and Ahamed Saleem, MP and Chair, Environment and Climate Change Committee. Frank Muller Rosentritt, MP German Bundestag (Federal Parliament) also addressed the participants.

Where tourism fairs in Europe would normally feature around 240 marketers, public relations officers and 100 co-exhibitors, the German Tourism Fair held last year had only 27 participants, Mohamed said.

While promoting the country digitally on the one hand, Dr. Masoom said that practical safety protocols were drawn up in consultation with the WHO. A special local Covid insurance package had also been introduced. As well, the government had been quick to launch the vaccination campaign, prioritising vaccinations for those in the tourism industry. Ninety eight percent of industry staff has been vaccinated, and the country has started on booster shots, he said.

The campaign has seen an increase in tourists from India, with 291,000 visitors from that country while attracting visitors from countries such as Brazil, Argentina, other South American nations and Nordic regions. Around 130,000 Germans too had chosen the Maldives for their vacation last year. In all the Maldives attracted over a million tourists last year.

This year marks fifty years of the tourism industry of the Maldives, and “We are doing our best to make it truly a Golden Year,” Dr.Mausoomstated, adding that the industry promoted “barefoot experience, where the tourists could walk around the islands and enjoy the surroundings,” and take a break from “zoom fatigue.”

Maldives, has won the “Best Luxury Destination of the Year”, awarded by Connoisseur Circle, for two consecutive years.The well-known publication features exclusive destinations and high-end hotels amongst German speakers, and the Maldivesis hopeful of winning the award this year too.

While those arriving on private jets tend to spend longer vacations, even up to 3 months, the industry is now promoting home-stays too, which will provide tourists a closer experience of the culture, the people and local food. “They can go fishing, and even cook it,” Mohamed explained.

Surveys have indicated that travellers are more conscientious now, more so since the pandemic, and are looking for destinations that promote sustainability of the environment.

And the Maldives is now placing more emphasis on eco- tourism and sports tourism. Floating hotels too are being planned.

Despite the successes gained in the tourist industry, rising sea levels caused by climate change poses the biggest threat, explained Ahmed Saleem, who chairs the country’s first Committee on Environment and Climate Change. Tourism and environment, he pointed out, are co-related.

Most of the islands, nearly 80 percent, have an elevation of one meter above sea-level. The oceans, he says are rising at the rate of 3.9 millimeters per year. “It may not seem a lot but when your elevation is just one meter then it is quite alarming,” he said.

Right from the onset of the Covid pandemic, the Maldivian parliament held its sessions online, he said, adding that it helped get work done, including legislation to promote sustainable development. Amongst those was the adoption of the Climate Emergency Act 2021. Legislation has also been brought in to ban single use plastics by 2021, he said, adding that tourists can play their part by refusing to purchase water sold in plastic bottles.

That would compel suppliers to switch to glass bottles. Already, three bottling plants have moved to glass bottles. He recalled that years ago, since the Maldives had no way to dispose of used batteries, European tourists would take those back with them.

Studies show that plastic pollution is the biggest threat to the eco-system, especially the coral reefs, Saleem said, adding that these reefs encompass the way of life of the Maldivian; culture, economy and livelihood.

“We have to protect the coral reefs as they prevent erosion. If the reefs go, then the beaches will go and it is the beach that attracts the tourist,” he explained.

If nothing is done to contain the pollution, he pointed out that studies indicate there will be “an increase of 40 percent in plastic waste and 45 percent ocean leakage over the next 10 years.” Tourists, generate twice as much waste as Maldivians.

The Maldives has allocated 4.2 percent of its annual budget for environmental protection and adaptation to guard shore lines as a result, Saleem said. An estimated US $ 8.8 billion is needed to protect the shore lines of the inhabited islands, he added.

Rain and ground water provides the only source of natural water, and that is affected when the coast line erodes. Reverse osmosis projects have been introduced by the government to increase the supply of fresh water, “to ensure water security,” he added.

As Dr. Mausoom said, the Maldives is providing “opportunities for the present generation to enjoy, while protecting the future.”

Sri Lanka stocks close down 0.60-pct, dragged by HNB and LOLC

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange closed down on Friday, CSE data showed, with the benchmark All Share Price Index moving down 0.60 percent.

The ASPI was down 133.22 points at 22,024.18, while the more liquid S&P SL20 was down 1.06 percent, or 67.55 points, at 6,298.02.

The ASPI ended the week up 784.53 points from last Friday.

Positive contributors to the ASPI were Dialog Axiata (up 0.40 percent at 50.20 rupees), Distilleries Company of Sri Lanka (up 0.52 percent at 58.30 rupees), Aitken Spence (up 3.60 percent at 151.00 rupees), Ceylon Tobacco Company (up 1.05 percent at 1,828.50 rupees), and LOLC Finance (up 1.96 percent at 5.20 rupees).

Hatton National Bank (down 1.88 percent at 403.75 rupees), Richard Pieris and Company (down 6.21 percent at 27.20 rupees), LOLC Holdings (down 2.17 percent at 405.00 rupees), Sampath Bank (down 1.91 percent at 154.00 rupees), and Singer (Sri Lanka) (down 2.40 percent at 77.30 rupees) were top negative contributors.

Market turnover was 3.23 billion rupees. Capital goods led turnover with 869.21 million rupees. (Colombo/Nov13/2026)

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Sri Lanka MP slams budget speech for omitting Tamil national question

ECONOMYNEXT – A Sri Lanka legislator has voiced strong disappointment that the President’s budget speech failed to make a single mention of the Tamil national question.

“It is very unfortunate that in His Excellency the President’s speech, there has not been a single word mentioned about the Tamil national question. Not a single word,” Shanakiyan Rasamanickam said.

“A budget speech generally, is a policy direction of the government for the next year. The budget speech is not only a statement of the country’s fiscal position or the economy’s position. It is the country’s, the government’s, plan, or what the government plans to do the following year. That’s a policy statement.”

Former presidents would at least mention the Tamil question even if it was not resolved, he said.

Former President Ranil Wickremesinghe in his speech, in his policy statement, he would mention: “The Tamil national question must be resolved,” Rasamanickam said.

Former Presidents Maithripala Sirisena and Gotabaya Rajapaksa also mentioned that the national ethnic question must be resolved, he added.

“Every President, every country’s Head of State, in their policy statements, have acknowledged the fact that there is an unresolved national issue, the Tamil national question, that it needs to be resolved. Various governments have proposed various mechanisms; none of them have succeeded, but at least it was mentioned.”

This year’s budget made allocations for the Office of Missing Persons, and the Office of Reparations.

“But the domestic mechanism is a mechanism that the victim community has rejected. So you all are allocating money to a mechanism where the victim community is not going to be part of.”

Last year’s budget 1 billion was allocated to be spent on the Trincomalee and Jaffna airports.

“Where was that 1 billion for the Trincomalee and Jaffna airports spent last year?”

“The trajectory of this government, Honourable Deputy Speaker, is worrying to me. It’s really worrying to me. Because if the objective is to say that there is no Tamil national question, if the objective is to say that you all have resolved any ethnic issue that this country faced, then Honourable Deputy Speaker, then I think the Tamil people will teach this government a very, very, very harsh lesson in the future.” (Colombo/Nov13/2026)

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Sri Lanka sells extra Rs6.5bn Treasury bills after auction

ECONOMYNEXT – Sri Lanka has sold 6,500 million rupees of treasury bills offered on tap at an average rate of 9.95 percent, the public debt management office said, bringing the total of bills sold in the week to 85.562 billion rupees.

The issue offered 90 billion.

Total market subscription was 6.5 billion rupees.

The debt office sold a 12-month bill at 9.95 percent.

On Wednesday (11) the debt office raised 79 billion rupees of 3, 6 and 12 month bills after offering 90 billion.

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Sri Lanka Treasury bill yields hold broadly steady, less bills sold

The settlement date is November 13. (Colombo/Nov13/2026)

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Access Engineering Sept quarter group net profit surges 200-pct to Rs4.75bn

ECONOMYNEXT — Sri Lanka’s Access Engineering PLC recorded a group net profit attributable to equity holders of Rs. 4.75 billion for the quarter ended September 30, surging 200 percent from Rs. 1.58 billion a year earlier, interim accounts showed.

Basic earnings per share rose to Rs. 4.08 for the September quarter, up from Rs. 1.58 previously.

Quarterly group revenue expanded 36 percent to Rs. 20.39 billion from Rs. 14.94 billion, underpinned by condominium property handovers — reflected in inventories dropping Rs. 7.69 billion since March to Rs. 35.71 billion — alongside strong automobile sales and steady civil engineering execution.

Cost of sales rose at a slower 27 percent to Rs. 14.34 billion, lifting gross profit by 64 percent to Rs. 6.05 billion and expanding gross margins to 29.7 percent from 24.7 percent.

Other income jumped 144 percent to Rs. 259.9 million, while administrative expenses rose 75 percent to Rs. 1.14 billion, leaving operating profit up 64 percent at Rs. 5.16 billion.

However, finance costs more than doubled, rising 107 percent to Rs. 1.18 billion on elevated group borrowings of Rs. 43.74 billion, partly offset by finance income climbing 302 percent to Rs. 42.2 million.

Share of results from equity-accounted investees rose 122 percent to Rs. 26.7 million, pushing pre-tax profit up 56 percent to Rs. 4.05 billion.

Income tax swung to a net reversal of Rs. 186.6 million from an expense of Rs. 804.1 million, boosted by deferred tax assets on unrelieved losses from a 100 percent enhanced capital allowance claimed by 60 percent-owned radiopharmaceutical subsidiary Access Medical Tracers (Private) Limited.

Total period profit rose 136 percent to Rs. 4.24 billion, with non-controlling interest declining 24 percent to Rs. 164.9 million following last year’s buyout of minority shareholders in Harbour Village (Private) Limited.

No separate exchange gain or loss was itemized in quarterly earnings, though foreign currency translation via associates recorded a Rs. 17.4 million loss in other comprehensive income, alongside USD 16.6 million in corporate guarantees.

Notes also flagged an expected Rs. 1.45 billion recovery from the terminated South Asia Commercial and Logistics Hub project, a Rs. 225 million post-quarter legal settlement already provided for, and a Supreme Court appeal over a 2011/12 PAYE tax ruling.

Group assets stood at Rs. 132.4 billion as of September 30, with net asset value per share at Rs. 46.70, as the Employees’ Provident Fund raised its stake to 5.69 percent.

Access Engineering shares closed at 80.00 rupees at the end of September and are currently trading around 85.80 rupees. (Colombo/Nov13/2026)

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Sri Lanka private sector says timely implementation of Budget 2027 key

ECONOMYNEXT – Private sector body, The Ceylon Chamber of Commerce, said it was encouraged by the broad direction of Budget 2027, noting that it reinforces Sri Lanka’s commitment to economic transformation while maintaining policy continuity, macroeconomic stability, and fiscal discipline.

“This continuity is particularly important as the country seeks to transition from economic stabilisation to a more durable, investment-led growth trajectory.”

The chamber also noted several areas where the Budget could have placed greater emphasis to strengthen the country’s growth prospects.

“In particular, there is a need for a stronger focus on attracting Foreign Direct Investment (FDI), accelerating factor market reforms, particularly in land and labour, and fast-tracking public procurement reforms to improve the efficiency and speed of project implementation.

“More targeted and actionable proposals could have been introduced to unlock the potential of sectors with significant growth opportunities, including tourism, agriculture, IT/BPO and logistics.”

The chamber said the budget contains positive measures aimed at enhancing competitiveness, and external sector resilience, while presenting opportunities for focus on sectors that can accelerate growth.

“A number of the key structural reforms identified in last year’s Budget have been carried forward and strengthened, providing greater certainty and predictability to businesses and investors.

“These include the continued implementation of the Trade National Single Window (TNSW), the phased removal of para-tariffs, the rollout of the Digital ID framework, efforts to expand market access through new Free Trade Agreements (FTAs), the strengthening of one-stop-shop investment facilitation mechanisms, progress on Customs reforms, the expansion of Bandaranaike International Airport (BIA), enhanced financing support for SMEs, and reforms relating to the management of State-Owned Enterprises.”

The CCC said that more than 20 proposals submitted by it have been reflected in Budget 2027.

These include measures to strengthen investor facilitation through the establishment of a professionally managed investment promotion agency; continued efforts to improve trade facilitation and export competitiveness; the Government’s consideration of a successor programme with the International Monetary Fund (IMF); accelerated progress on key legislative reforms; the expansion of digital government services; and the promotion of cashless payments and broader digital adoption. The Budget has also captured several priorities relating to energy security, including the accelerated deployment of Battery Energy Storage Systems (BESS) and investments in fuel storage infrastructure, initiatives to optimize underutilized agricultural land, measures to support the expansion of the digital economy and the IT/BPO sector, and tax reforms to support exporters, including the acceptance of newly VAT-registered exporters as eligible exporters.

“The inclusion of these priorities reflects the value of sustained public-private dialogue and demonstrates increasing alignment between national policy objectives and the needs of a competitive, export-oriented economy.

“The priority now must be effective and timely implementation to translate policy commitments into investment, competitiveness, exports and sustainable growth.” (Colombo/Nov13/2026)

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Sri Lanka stocks trend lower day after budget reading

ECONOMYNEXT – Sri Lanka’s Colombo Stock Exchange was trending lower on Friday, CSE data showed, with the benchmark All Share Price Index moving down 0.66 percent.

The ASPI was down 146.78 points at 22,011, while the more liquid S&P SL20 was down 0.94 percent, or 59.99 points, at 6,306.

Positive contributors to the ASPI were Access Engineering (up 1.30 percent at 85.80 rupees), LAUGFS Gas (up 3.31 percent at 49.90 rupees), Ceylon Tobacco Company (up 1.13 percent at 1,830 rupees), Ceylon Cold Stores (up 0.80 percent at 126 rupees), and Namunukula Plantations (up 1.79 percent at 68.10 rupees).

LOLC Holdings (down 1.03 percent at 409.75 rupees), Hatton National Bank (down 0.61 percent at 409 rupees), Sunshine Holdings (down 3.81 percent at 30.30 rupees), and Sampath Bank (down 1.91 percent at 154 rupees) were top negative contributors.

Market turnover was 1.55 billion rupees. Capital goods led turnover with 459.57 million rupees. (Colombo/Nov13/2026)

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